Homework answers / question archive / The marginal propensity to save Assume that initially G is $100 and equilibrium real GDP demanded is $1,000 If the multiplier is 4 and G increases to $200, real GDP demanded will increase a by $100 b by $2,000 c by $1,000 d to $1,400 e to $2,000   If autonomous net taxes decline by $40 billion and the MPC = 075, then equilibrium real GDP demanded a declines by $120 billion b increases by $120 billion c declines by $160 billion d increases by $160 billion e increases by $40 billion   Assume autonomous net taxes rise by $400; the marginal propensity to consume = 3/4 Net exports, planned investment, taxes, and government purchases are autonomous and remain fixed As a result, saving will initially a fall by $400 b rise by $300 c remain unchanged d fall by $100   e rise by $100

The marginal propensity to save Assume that initially G is $100 and equilibrium real GDP demanded is $1,000 If the multiplier is 4 and G increases to $200, real GDP demanded will increase a by $100 b by $2,000 c by $1,000 d to $1,400 e to $2,000   If autonomous net taxes decline by $40 billion and the MPC = 075, then equilibrium real GDP demanded a declines by $120 billion b increases by $120 billion c declines by $160 billion d increases by $160 billion e increases by $40 billion   Assume autonomous net taxes rise by $400; the marginal propensity to consume = 3/4 Net exports, planned investment, taxes, and government purchases are autonomous and remain fixed As a result, saving will initially a fall by $400 b rise by $300 c remain unchanged d fall by $100   e rise by $100

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The marginal propensity to save

Assume that initially G is $100 and equilibrium real GDP
demanded is $1,000 If the multiplier is 4 and G increases to $200, real GDP
demanded will increase

a by $100

b by $2,000

c by
$1,000

d to $1,400

e to $2,000

 

If autonomous net taxes decline by $40 billion and the MPC =
075, then equilibrium real GDP demanded

a declines
by $120 billion

b increases
by $120 billion

c declines
by $160 billion

d increases
by $160 billion

e increases
by $40 billion

 

Assume autonomous net taxes rise by $400; the marginal
propensity to consume = 3/4 Net exports, planned investment, taxes, and
government purchases are autonomous and remain fixed As a result, saving will
initially

a fall by
$400

b rise by
$300

c remain
unchanged

d fall by
$100

 

e rise by
$100